|
Superannuation
– life insurance
This is a
reminder to all employers that they have 14 days from when an
employee completes the Australian Taxation Office Employment
Declaration Form, to notify their choice of Superannuation Fund of
the employee’s tax file number.
The form
does have a box that you are required to tick advising that you, as
the employer, have attended to this requirement.
Also
employers have a requirement to nominate a default Superannuation
Fund and from 1 July 2008 that default fund must offer minimum life
insurance for its members.
Many self
managed superannuation funds (SMSFs) do not have life insurance for
their members and therefore will need to meet this
requirement.
We
recommend that you contact your Chartered Accountant to discuss
this requirement.
Corporate
insolvency
Changes
have been made to the Corporations Act 2001 (Cwlth) where
employees of failed companies will have a better chance of getting
their unpaid superannuation contribution entitlements
back.
Superannuation
entitlements now rank equally with wages and unpaid leave in an
insolvency.
To ensure
your interests are best looked after please contact your Chartered
Accountant so that the correct proof of debt in an insolvency is
submitted.
Improving
cash flow
The
economic conditions of the past few years are changing.
Many
small businesses are now noticing cash flow is harder to maintain
as invoices are taking longer to be paid.
To
improve cash flow, the following strategies are
recommended:
1.
Set clear terms of trade and instead of ‘pay 14 days’, set a
particular due date. For example 17 May 2008. (Telstra
invoices implement this strategy)
2.
Check the credit of new customers with debt collection agencies,
including customer information and legal structure
3.
Get to know the person in your customer’s accounts payable
department and develop a relationship where you may obtain
preferential payment
4.
Hand deliver invoices if possible to ensure they get into the
accounts payable system, and not ‘lost in the mail’
5.
Set credit limits and stick to them
6.
Follow up with phone calls rather than sending statements or
additional copies of your invoices in the mail.
| 